Can a Virginia political party run a raffle as a fundraiser under the charitable-gaming exemption?

Plain-English summary

The Lee County Commonwealth's Attorney asked whether a political party can run a raffle as charitable gaming, taking advantage of the permit exemption in Code § 18.2-340.23. The CA framed the question as one about the permit, but the AG concluded the political party fails an earlier hurdle: it cannot conduct a raffle at all under Virginia law.

Virginia generally prohibits gambling (Code §§ 18.2-325, 18.2-326), with a carve-out for charitable gaming in Article 1.1:1 of Title 18.2 when conducted in strict compliance with the Code. The article (Code §§ 18.2-340.15 to 18.2-340.38) authorizes specific kinds of entities to conduct charitable gaming. Code § 18.2-340.16 permits "any nonprofit organization" to run raffles with annual gross receipts of $40,000 or less. But Code § 18.2-340.33 limits the use of the proceeds to "those lawful religious, charitable, community or educational purposes" for which the organization "is specifically chartered or organized." Two prior AG opinions (1975 and 1986-1987) had already concluded that political parties and committees are organized for political purposes, not for religious, charitable, community, or educational purposes. The General Assembly considered (and declined to pass) House Bill 2389 in 2015, which would have permitted political party committees to conduct charitable gaming. The Department of Elections summary of laws and policies for political party committees confirms the point: "political organizations in Virginia may not, under any circumstance, use raffles as a fundraising tool."

Because political parties cannot run raffles in the first place, the AG did not need to address whether the permit exemption in § 18.2-340.23 would apply.

Currency note

This opinion was issued in 2018. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Background and statutory framework

Virginia's charitable-gaming statute (Article 1.1:1 of Title 18.2, Code §§ 18.2-340.15 through 18.2-340.38) creates a narrow exemption from the state's general anti-gambling laws for organizations that conduct gaming in strict compliance with the Code. The Department of Agriculture and Consumer Services administers the permit system. Eligible entities include "qualified organizations" defined in § 18.2-340.16 (essentially, organizations operated for religious, charitable, community, or educational purposes). For small raffles, § 18.2-340.16 has a separate avenue allowing "any nonprofit organization" to raise funds with annual gross receipts of $40,000 or less.

The key constraint comes from § 18.2-340.33, which limits the expenditure of raffle proceeds to "lawful religious, charitable, community or educational purposes" for which the organization is "specifically chartered or organized." That qualifier ties the proceeds back to the organization's chartering purpose, not just to a charitable end. A nonprofit chartered for political purposes cannot suddenly spend raffle proceeds on a community cause and qualify; it has to have been chartered or organized for one of the listed purposes in the first place.

The AG built on two prior opinions. The 1975 AG opinion concluded that "[a] city or county political committee is an association organized for political purposes as distinguished from being organized exclusively for community or educational purposes." The 1986-1987 opinion reached the same result for a county committee for a political party. The 2015 General Assembly's rejection of HB 2389 (which would have expressly permitted political party committees to conduct charitable gaming) added legislative confirmation that political parties are not currently authorized for this purpose.

Common questions

Why isn't a political party a "charitable" or "community" organization for raffle purposes?
Because a political party is organized to advance political candidates and political positions, not to serve religious, charitable, community, or educational purposes in the statutory sense. The AG opinions have read those purposes narrowly to exclude political organizations.

Can a political party run a small raffle for under $40,000?
No. The $40,000 receipts threshold in § 18.2-340.16 is one path to authorization, but it is not a complete pass. The § 18.2-340.33 limitation on the expenditure of proceeds still applies, and that limitation requires the organization to be specifically chartered or organized for a qualifying purpose.

What about a separate charitable foundation set up by a political party?
That would be a different analysis. A separately incorporated foundation organized as a § 501(c)(3) charity could potentially qualify, depending on its charter purpose and the way the political party interacts with it. The opinion does not address such structures.

Could the General Assembly change this rule?
Yes. The General Assembly considered legislation in 2015 (HB 2389) that would have explicitly permitted political party committees to conduct charitable gaming. The bill did not pass. A future amendment could carve out an exception for political parties, but absent that, the current statute does not authorize their participation.

What enforcement risk does a political party face if it tries to run a raffle anyway?
Virginia's general gambling prohibitions (Code §§ 18.2-325, 18.2-326) would apply. Running a raffle without proper authorization can result in misdemeanor or felony charges, depending on the conduct. The Department of Agriculture and Consumer Services can also enforce administratively against unauthorized gaming.

Does the conclusion change for non-raffle fundraising activities?
Yes. Political parties commonly raise money through donations, dues, ticketed events, and merchandise sales. The opinion concerns only the charitable-gaming question. Other fundraising mechanisms have different legal frameworks.

Citations

• Va. Code §§ 18.2-340.15 to 18.2-340.38 (Charitable Gaming statute)
• Va. Code § 18.2-340.16 (qualifying nonprofit raffles)
• Va. Code § 18.2-340.33 (use of proceeds limitation)
• Va. Code §§ 18.2-325, 18.2-326 (general gambling prohibitions)
• 1975 Op. Va. Att'y Gen. 208
• 1986-1987 Op. Va. Att'y Gen. 166
• HB 2389, 2015 Reg. Sess. (failed bill that would have authorized political party committees)
• Virginia Department of Elections, Summary of Laws and Policies: Political Party Committees

Source

• Landing page: https://www.oag.state.va.us/annual-reports-opinions/official-opinions
• Original PDF: https://www.oag.state.va.us/files/opinions/2018/Official-Opinion-HFuller-Cridlin-Esq.pdf

Original opinion text

COMMONWEALTH of VIRGINIA
Office of the Attorney General
Mark R. Herring
Attorney General

November 2, 2018

The Honorable H. Fuller Cridlin
Lee County Commonwealth's Attorney
Post Office Box 467
Jonesville, Virginia 24263

Dear Mr. Cridlin:

I am responding to your request for an official advisory opinion in accordance with § 2.2-505 of
the Code of Virginia.

Issue Presented
You ask whether a political party's raffle falls within the charitable gaming permit exemption
outlined in § 18.2-340.23.

Applicable Law and Discussion
Although gambling is generally prohibited in the Commonwealth,[1] an exception exists for
charitable gaming when conducted in strict compliance with the requirements of the Code.[2] The relevant
provisions of the Code governing charitable gaming are found in Article 1.1:1, Chapter 8 of Title 18.2
(§§ 18.2-340.15 to 18.2-340.38). Among other things, this article establishes the types of entities that are
authorized to conduct charitable gaming in the Commonwealth and the conditions under which they are
permitted to do so, including state supervision and, where applicable, possession of a valid permit issued
by the Department of Agriculture and Consumer Services.

The only potential basis of authority in the article for a political party to conduct a raffle is found
in § 18.2-340.16, which provides in relevant part that "[a]ny [] nonprofit organization" may "raise[]
funds by conducting raffles that generate annual gross receipts of $40,000 or less."[3] As applied to this
provision, however, a separate statute in the article limits the expenditure of proceeds derived from such
a raffle to "those lawful religious, charitable, community or educational purposes" for which the
nonprofit organization "is specifically chartered or organized."[4] As indicated in previous opinions of this
Office, a political party is not an entity specifically chartered or organized for religious, charitable,
community, or educational purposes.[5] Therefore, it may not conduct a raffle as a form of charitable
gaming in the Commonwealth.[6]

Because a political party is not authorized under the Code to conduct a raffle, it is unnecessary
for me to reach the particular question you ask regarding whether a political party's raffle would be
exempt from the charitable gaming permit requirement pursuant to § 18.2-340.23.

Conclusion
Accordingly, it is my opinion that a political party may not conduct a raffle as a form of
charitable gaming in the Commonwealth, as it is not an entity specifically chartered or organized for
religious, charitable, community, or educational purposes.
With kindest regards, I am,

Sincerely yours,

Mark R. Herring
Attorney General

1. VA. CODE ANN. §§ 18.2-325 (2014); 18.2-326 (2014); see also 2010 Op. Va. Att'y Gen. 99, 100, 103 n.1.

2. See § 18.2-340.15(A) (2014); 2010 Op. Va. Att'y Gen. 99, 100, 103 n.1.

3. See VA. CODE ANN. § 18.2-340.16 (Supp. 2018) (providing also that the gross receipts from such a raffle, less expenses and prizes, must be used "exclusively for charitable, educational, religious or community purposes").

4. VA. CODE ANN. § 18.2-340.33 (Supp. 2018).

5. See 1975 Op. Va. Att'y Gen. 208, 209 ("A city or county political committee is an association organized for political purposes as distinguished from being organized exclusively for community or educational purposes."); 1986-1987 Op. Va. Att'y Gen. 166, 166-67 (county committee for a political party is not an organization "operated exclusively for religious, charitable, community or educational purposes").

6. See also VIRGINIA DEPARTMENT OF ELECTIONS, SUMMARY OF LAWS AND POLICIES: POLITICAL PARTY COMMITTEES (rev. Oct. 28, 2014), at 21/43, available at https://www.elections.virginia.gov/Files/CandidatesAndPACs/PoliticalCommittees/PoliticalParty/Party_Summary.pdf (stating that "political organizations in Virginia may not, under any circumstance, use raffles as a fundraising tool"). I note, moreover, that in 2015 the General Assembly declined to pass legislation that would have permitted political party committees to conduct charitable gaming in the Commonwealth. See H.B. 2389, 2015 Reg. Sess. (left in the General Laws Committee); see also generally Tabler v. Bd. of Supvrs., 221 Va. 200, 202, 269 S.E.2d 358, 360 (1980) ("In determining legislative intent, we have looked both to legislation adopted and bills rejected by the General Assembly.") (Emphasis added).